Recognition:  A worthwhile investment
Patti Dunham, MBA, MA, SPHR
Strategic Human Resources, Inc.

According to a survey conducted by World at Work and the National Association of Employee Recognition (NAER), 87% of employers have some type of recognition program for employees, up from 64% in 2002.  From those figures, it appears that we do not have a problem recognizing employees.  However, we continue to hear from our exiting employees that they are not being recognized.  According to the Saratoga Institute, 60% of exiting employees indicate one of the reasons for leaving an organization is that they are not recognized and are taken for granted.  So, where is the disconnect? 

The desire to be recognized and praised is one of our deepest cravings.  Employee’s expectations on the job have increased.  One of those expectations includes recognition and it appears that our programs have not kept up with the increasing level of importance employees place of this need.  Evaluating the programs we have in place is just the first step in successfully implementing programs that will result in a positive investment… retaining our quality employees.  Keep the following things in mind when reviewing your current program or when establishing a new recognition program.

The recognition “do’s”

• Determine what it is you are trying to accomplish with the recognition.  Make sure you create programs that support the organization’s goals, missions, and/or values and tie the programs together.  You may wish to combine programs that recognize organization and/or departmental objectives by adding a departmental component to the program if necessary.
• Ask your employees what type of programs they would like to see.  In a recent survey by the NAER, 78% of employees surveyed indicated that it was “very important” or “extremely important” to be recognized so let them tell you how.  Use surveys or focus groups to determine what type of programs would be meaningful to them and what type of rewards they would like to see.
• In analyzing the data received from employees, remember, one size does not fit all.  As we are all aware after returning some of those holiday gifts we received this past month, truly one size does not fit all.  That holds true for recognition programs.  The recent shift in recognition programs has become one that is much more informal.  Allowing more flexibility in the programs allow supervisors to be more sincere and create more personal rewards that fit the employee.
• Gratitude is the biggest and most important part of recognition.  According to the National Association for Employee Recognition the recognition industry is a $27 billion incentive industry.  With all those dollars at stake, we sometimes lose sight of the reason for the program.  A sincere thank you in written or verbal form shows employees that what they do does matter and is appreciated.  Take time to express gratitude when you recognize, don’t rush through it to get it off your ‘to do’ list.
• Timing is critical.  Recognition should occur immediately or soon after a noteworthy event or action.  Imagine giving everyone you know a birthday card a month after their birthday.  The feeling of ‘better late than never’ is not effective.
• Communication is essential.  Kick off your recognition program with a BANG and provide constant reminders about the program.  Create a catchy theme and tie that into your communications.  Remember, the rule of thumb is that a message must be delivered nine times before it is completely absorbed so keep your message out there and fresh.
• Make it fun!  Spontaneity allows us to get out of the expectation mode.  Traditional awards such as birthday, service, or employee of the month/quarter awards can promote a feeling of entitlement which may not necessarily impact the organization’s bottom line.  Allow spot awards or occasional performance incentive awards that can be given at a supervisor’s discretion.  Programs such as this can be directly tied to activities that promote the organization’s mission and vision and can be given quickly after a recognizable event.
• Encourage peer recognition.  One of the fastest growing trends is peer recognition.  Programs such as these help to promote teamwork and cooperation.  Programs in which all levels of employees are able to recognize achievements and accomplishments keep them exciting and in the forefront.  As we are all aware, supervisors don’t see everything that happens in the workplace.  Peer recognition is a way to allow others to thank coworkers for something they have done that has made a difference.
• Recognition is everyone’s job!  As HR professionals, we are challenged with creating a culture that promotes recognition and supports the organizational goals while positively (or at least not negatively) impacting the bottom line.  HR cannot do it alone.  Effective recognition programs must be embraced by all levels of the organization and must be conducted at all levels.
• Evaluate programs and measure their success.  As with any program that is implemented, it is important to measure it’s return on investment.  Nothing talks better than money and it will be important for the continuation (or implementation) of your recognition program to show the positive impact on the bottom line.  Recognition is not easy to measure because it deals with feelings, but it is possible.  One way to measure ROI is to measure turnover resulting from lack of recognition.  How many exiting staff cite “lack of recognition” as their reason for leaving?  How many indicate the same reason after program implementation?  Has it improved?  Another measure could be to use recognition as a part of your employee survey and measure the change in employee satisfaction levels with the programs from year to year.  Finally, use the goal you are trying to accomplish with the program.  Was the program implemented to enhance customer satisfaction?  Use surveys to determine customer satisfaction scores prior to and after program implementation.

It is no secret that today we are struggling to attract and retain quality employees.  Also, those employees that are in place are less secure and less trusting that ever before as a result of a decade of downsizing and restructuring, limited pay increases, and increasing health care costs.  Creating effective recognition strategies that have a positive return on investment can assist us in improving the morale and distrust of our employees and enhancing organizational commitment.  Use some of these tips to refresh your current program or to implement a program in your organization.

Finally, I challenge you to make an investment in your staff today.  Put down this article and thank someone today for something they have done.  Did they go ‘above and beyond’?  Did they remember someone’s anniversary with the organization?  Did they suggest an idea to improve a process?  Did they make it in on a day when the weather was not cooperating?  Remember, formal recognition programs are great, but frequent expressions of gratitude are just as well received.  I promise it will be well worth the investment.  

Thanks to Patti Dunham, M.A., MBA, SPHR for contributing this article.  Patti is Senior HR Consultant with Strategic Human Resources (http://www.StrategicHRinc.com).  She can be contacted at Patti@StrategicHRinc.com.